Hsbc Holdings PLC Makes New Investment in ScanSource, Inc. $SCSC

Key Points

• Hsbc Holdings PLC purchased 36,881 ScanSource shares worth approximately $1.93 million in the second quarter, giving it a 0.18% stake. Institutional investors collectively own 97.91% of the company.
• ScanSource reported quarterly EPS of $1.46, exceeding the $1.14 consensus estimate, while revenue rose 17.3% year over year to $953.11 million.
• Analyst views remain mixed but lean positive, with ScanSource carrying a consensus “Moderate Buy” rating and a $43 price target; the stock recently opened at $56.55.

Hsbc Holdings PLC purchased a new stake in ScanSource, Inc. (NASDAQ:SCSC - Free Report) during the 2nd quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission. The firm purchased 36,881 shares of the industrial products company's stock, valued at approximately $1,933,000. Hsbc Holdings PLC owned 0.18% of ScanSource at the end of the most recent reporting period.

Other institutional investors also recently modified their holdings of the company. Canada Pension Plan Investment Board bought a new position in shares of ScanSource during the second quarter worth about $823,000. Legal & General Group Plc bought a new stake in ScanSource in the 2nd quarter valued at approximately $2,319,000. The Manufacturers Life Insurance Company bought a new stake in ScanSource in the 2nd quarter valued at approximately $289,000. EP Wealth Advisors LLC acquired a new position in ScanSource during the 2nd quarter worth approximately $317,000. Finally, JB Capital Partners LP acquired a new position in ScanSource during the 2nd quarter worth approximately $1,041,800. 97.91% of the stock is currently owned by institutional investors.

Analyst Upgrades and Downgrades

A number of research firms have recently issued reports on SCSC. Weiss Ratings reiterated a "hold (c+)" rating on shares of ScanSource in a report on Wednesday. Zacks Research upgraded shares of ScanSource from a "hold" rating to a "strong-buy" rating in a report on Monday, August 24th. Northcoast Research downgraded shares of ScanSource from a "buy" rating to a "neutral" rating in a research report on Monday, August 17th. Finally, Wall Street Zen raised shares of ScanSource from a "buy" rating to a "strong-buy" rating in a research report on Saturday. One equities research analyst has rated the stock with a Strong Buy rating and three have given a Hold rating to the company. According to MarketBeat, ScanSource presently has an average rating of "Moderate Buy" and a consensus price target of $43.00.

ScanSource Price Performance

NASDAQ:SCSC opened at $56.55 on Monday. The stock has a market capitalization of $1.14 billion, a PE ratio of 15.45, a P/E/G ratio of 0.83 and a beta of 1.28. ScanSource, Inc. has a 1-year low of $33.76 and a 1-year high of $66.78. The firm has a fifty day simple moving average of $53.83 and a 200 day simple moving average of $45.12. The company has a current ratio of 1.76, a quick ratio of 1.15 and a debt-to-equity ratio of 0.11.

ScanSource (NASDAQ:SCSC - Get Free Report) last announced its quarterly earnings results on Thursday, August 20th. The industrial products company reported $1.46 EPS for the quarter, beating analysts' consensus estimates of $1.14 by $0.32. ScanSource had a net margin of 2.44% and a return on equity of 10.10%. The firm had revenue of $953.11 million during the quarter, compared to analysts' expectations of $814.35 million. During the same quarter last year, the company posted $1.02 earnings per share. The company's revenue for the quarter was up 17.3% compared to the same quarter last year. On average, research analysts expect that ScanSource, Inc. will post 4.56 EPS for the current fiscal year.

ScanSource Profile

ScanSource, Inc is a global provider of technology products and solutions designed to help businesses enhance operational efficiency and customer engagement. The company specializes in the distribution of point-of-sale (POS) systems, barcode and data capture devices, networking and communications equipment, and value-added software and cloud services. By combining hardware, software and professional services, ScanSource supports channel partners in delivering end-to-end solutions across multiple industries, including retail, hospitality, healthcare and logistics.

Founded in 1992 and headquartered in Greenville, South Carolina, ScanSource has built a broad international footprint, serving customers throughout North, Central and South America as well as Europe, the Middle East and Africa.

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